BACK TO 1935: EFFECT OF IMPORT POLICY

Greymouth Evening Star, 20 October 1948, Page 2

BACK TO 1935: EFFECT OF IMPORT POLICY

(P;A.) WELLINGTON, Oct. 19. “The alteration in the import licensing system as announced by Mr N'ash does hothing to Chafige the Established method by Which the State dictates what people may buy End hoW they shhll spend their ffidnfcy,” Said the Leader of the Oppositioii (Mr S. G. Holland) in a statement this evening. “Mr Nash obviously attachted great importance to this speech. That, is evident from the fact that a special broadbast was arranged. Perhaps he has at last realised the difficulties under which business firms have been operating through the cumbersome, inefficient licehsihg system m vogue since 1938. No doubt, too, he Realises that as an election is looming up some gestures to appease the public are necessary. “But what is the effect of the changes? An attempt lias at last been made to simplify the system, and business firms will hb doubt be duly grateful for this long overdue recognition of their difficulties, but the general public will still find that many goods for which there is a legitimate demand are either in short supply or else totally unprocurable.

20 Per Cent. Cut

“When Mr Nash made his broadcast on the alteration of the exchange rate he went a long way out of his way to give the impression that everyone would be able to buy fnore goods. For example he said: ‘British exporters will ultimately find New Zealand a better market since the exchange alteration than before it.’ Also he said: ‘There will be a major advantage to Britain in connection with the altered rate.’ Later on in the same broadcast he said: ‘The effect of the alteration taken by New Zealand with regard to the exchange rate will be to facilitate imports.’ “The clear intention behind these statements was to suggest that New Zealand Would get more goods from Britain because of the change in the exchange rate. Now, however, Mr Nash announces that the value of licences granted for 1949 will be reduced by one-fifth and this completely 'dashes to the ground any hopes raised by his broadcast op August 22, that more goods would be available. “Another unpleasant feature is his admission that the purchasing power of our sterling funds in London is now by 1939 standards only £33,000,000. In effect, says Mr Nash, we are back where we were in 1935. I Would suggest that by comparison we are now actually worse off in overseas buying power than when the present Government took office and this in spite of the enormous boom in export prices -that it still continuing. Debt Repayment Policy

“This- serious position can be traced partly to Mr Nash’s refusal to heed the warning of many people, including Mr. F. P. Walsh in the ‘Walsh report,’ that continuation of the policy of post-war debt repayment would seriously reduce our ability to pay for much-needed imports. “Mr Nash has preferred to pay off debts instead of letting people have the goods they require and the chickens, ate now coming home to rbost. ‘The changes that have been announced appear todoe a much-needed advance on the makeshift methods practised since 1938, but whether they effect any real improvement will depend very largely oh how they are administered.”